At TLNT, Jacque Vilet talks turkey on pay transparency, arguing that there’s no use pretending it won’t be standard practice a decade from now, so you might as well get with the program. Here are his five predictions for how companies will handle that paradigm shift:
- Pay everyone in the company the same — like at Gravity.
- Let employees either decide or vote on their own pay, as in Figure 53. Similar cases for this exist at Hanno and Semco.
- Pay employees in each pay grade or job the same. There’s some interesting research that shows evidence of “compression creep” even today. (See Does Transparency Lead to Pay Compression?, Alexandre Mas, Princeton University, 2015)
- Give the same percentage of base salary increase each year, based on general market movement
- Use recognition, team bonuses for differentiation and premiums for critical skills